On Tuesday, Foxconn, the world’s largest contract chipmaker, said it expects the second half of this year to be “in a better direction” since COVD-19 lockdown appears to be easing in Shanghai.
“We are quite confident in the stability of our supply chain for the second half of this year,” said Foxconn chairman Liu Young-way at the company’s annual general meeting (AGM).
From Tuesday, the Chinese government will allow residents in ‘low-risk’ areas to return to work.
Foxconn aims to be the first electric vehicle (EV) maker to be “not short on material supplies”, said Liu in reference to a prolonged global chip shortage that has forced carmakers to halt production and hurt smartphone production including for Apple Inc.
He went on to add, “A car that costs tens of thousands of dollars cannot be shipped because of a tiny chip worth fifty cents. This has been a pain for our customers”.
Foxconn aims to capture around 5% of the global electric vehicle market by the end of 2025 and hopes to boost the production capacity of its EV chips.
Earlier this month, Foxconn warned that its revenue from its electronics business including smartphones could slip this quarter following a sharp rise in inflation, midst cooling demand and escalating supply chain issues which are partly linked to lockdowns in China.
It also reiterated that China’s strict COVID-19 lockdown had a limited impact on its production since it kept workers on-site in a “closed loop” system; however demand for its products in China has come down since the city was under lockdown.